Question $5(1$ point$)$

When there is lack of trust between importer and exporter. How can we solve this

problem?

$$ The exporter offers more goods to the importer

$.$Use a third party, like a bank to issue a letter of credit

$$ The importer offers more funds to the exporter

Question $6(1$ point$)$

Which strategy did McDonald's use to grow their business rapidly?

$$ Liscencing

$$ Joint venture

$$ Greenfield investment

$.$Franchising

Q$7.$When there is low pressure to reduce costs and when there is high pressure to be locally responsive, which strategy should be used to deal with these pressures?

$$ International Strategy

$$ Transnational Strategy

$$ Global Standardization Strategy

$$ Localization $($Multidomestic$)$ Strategy

Question $8(1$ point$)$

Which type of Exporting uses Agents?

$.$Joint Venture

$.$Indirect Exporting

$.$Direct Exporting

$.$Licensing

Question $9(1$ point$)$

E$-$commerce $/$ e$-$business is the buying and selling of goods or services in a retail

store.

$$ True

$$ False.

Question $10(1$ point$)$

When there is low pressure, to reduce costs and when there is low pressure to be

locally responsive, the strategy that is best applied under these conditions is:

$$ Global Standardization Strategy

$$ Localization $($Multidomestic$)$ Strategy

$$ International Strategy

$.$Transnational Strategy

Question $11(1$ point$)$

Select all that apply. Many international market entry strategies require partnering

up with another organization. Research must be conducted to ensure the prospective partner is exactly what it appears to be$.$ This involves:

$.$Investigating partner's track record

$.$Investigating partner's ability to deliver products on time and budget

$.$Investigating partner's financial history

Question $12(1$ point$)$

One of the disadvantages of exporting are: Tariff barriers can make exporting

uneconomical.

$$ True

$$ False

Question $13(1$ point$)$

The main purpose of a FTA is to promote job creation in the participating countries.

$$ True

$$ False

Question $14(1$ point$)$

Which is not a transfer related market entry strategy?

$.$subcontracting

$.$indirect export

$.$franchising

$.$strategic alliance

Question $15(1$ point

Select all that apply. The main disadvantages of greenfield and brownfield

investments as an international market entry strategies include:

$.$Riskiest and most expensive compared to all of the other international market

entry strategies

$.$The company and management have a low level of control in finances,

operations and marketing

$.$Must be committed to the strategy for the long$-$term

$.$Profits have to be shared with partners

Question $16(1$ point$)$

The first step of conducting international market research is to gather data and

analyze the data collected

$.$True

$$ False

Question $17(1$ point$)$

Strategies are actions that managers take to attain the goals of the firm.

True

False

Question $18(1$ point$)$

Select all that apply. The main disadvantages of sub$-$contracting as an international

market entry strategy include:

$.$Subcontractors must be vetted carefully and monitored

$.$Subcontractors have a potential for damage to reputation of our mompany

$.$Subcontractors can be difficult and time consuming to find

$.$Company can no longer focus on core competencies after hiring sub$-$contractor

Question $19(1$ point$)$

A letter of credit is issued by a bank at the request of an importer. The letter of credit

states the bank will pay a specified sum of money to a beneficiary, the exporter,

on presentation of particular documents.

$.$True

$$ False

Question $20(1$ point$)$

Firms that operate internationally are able to realize location economies by

dispersing individual value creation activities to those locations around the globe

where they can be performed most efficiently and effectively.

$$ True

$$ False

Question $21(1$ point$)$

Select all that apply. When conducting international market research, you may need

to do secondary research. Secondary research involves:

Government website and publications

$.$Organization's records and reports

$.$Interviewing customers

$.$Competitor websites

$$ Conducting surveys to stakeholders

$$ Interviewing employees

Question $22(1$ point$)$

Firms that operate internationally are able to realize greater cost economies from

producing many different products in small volumes.

True

$$ False

Question $23(1$ point$)$

Select all that apply. The main disadvantages of licensing as an international market

entry strategy include:

$.$Loss of control over manufacturing, marketing, strategy

$.$Licensee might use IP to become a competitor

$.$Terms of agreement must be monitored and enforced

$.$Require substantial capital to execute

Question $24(1$ point$)$

By conducting International Market Research, you can learn more about

the POLITICAL SYSTEM of your target market.

$$ True

$$ False

Question $25(1$ point$)$

Corruption is a type of legitimate strategy to promote international trade

$.$ True

$$ False

Question $26(1$ point$)$

What is NOT a type of Government Subsidy

$.$Low interest loans to domestic producer

$$ Cash grants to foreign companies